- Forrester added in Checkpoint, Forescout, Google, illumio, MobileIron, Proofpoint, Symantec, and Unisys in their latest Forrester Wave™: Zero Trust eXtended Ecosystem Platform Providers this year.
- Forrester’s 2019 scorecard increased the weight on network security, automation and orchestration, and portfolio growth rate compared to last year, adding in Zero Trust eXtended (ZTX) ecosystem advocacy to the scorecard for the first time.
- Microsoft and VMWare are no longer included in the Forrester Wave™: Zero Trust eXtended Ecosystem Platform Providers this year.
These and many other interesting insights are from what’s new in the Forrester Wave™: Zero Trust eXtended Ecosystem Platform Providers, Q4 2019, written by Chase Cunningham and published on October 29, 2019. Chase is a leading authority on Zero Trust Security, and I was fortunate to have the opportunity to interview him earlier this year. You can read the interview here,10 Questions With Chase Cunningham On Cybersecurity. Forrester included 14 vendors in this assessment: Akamai Technologies, Check Point, Cisco, Cyxtera Technologies, Forcepoint, Forescout, Google, illumio, MobileIron, Okta, Palo Alto Networks, Proofpoint, Symantec, and Unisys. The following is the Forrester Wave™: Zero Trust eXtended Ecosystem Platform Providers, Q4 2019 graphic from the free reprint offered by MobileIron here.
Forrester Wave™: Zero Trust eXtended Ecosystem Platform Providers, Q4 2019
Summary of What’s New In Forrester’s Zero Trust Wave This Year
The latest Forrester Wave adds in and places high importance on Zero Trust eXtended (ZTX) ecosystem advocacy, allocating 25% of the weight associated with the Strategy section on the scorecard. Forrester sees Zero Trust as a journey, with vendors who provide the greatest assistance and breadth of benefits on a unified platform being the most valuable. The Wave makes it clear that Zero Trust doesn’t refer to a specific technology but rather the orchestration of several technologies to enable and strengthen their Zero Trust framework. Key insights from what’s new this year in the Forrester Wave™: Zero Trust eXtended Ecosystem Platform Providers, Q4 2019 include the following:
- Platforms are powering the Zero Trust landscape and delivering the greatest value to organizations on their Zero Trust journey. Forrester notes that organizations are getting the greatest benefits from choosing a single vendor who can deliver integrated, real-world capabilities instead of marketing hype.
- Ease of use and excellent usability need to be the new normal when it comes to Zero Trust Solutions. Forrester sees a widening gap between Zero Trust solutions that take administrator and end-user experience into account and deliver the critical capabilities that make ZTX frameworks successful and those that don’t. It’s common knowledge of how challenging Zero Trust solutions and platforms are to deploy. Raising the issue of improving usability will help expand the total available market for Zero Trust solutions and increase the effectiveness of every platform installed.
- A much stronger focus on Application Programmer Interfaces (APIs) and integration. This year’s Wave places much greater emphasis on APIs and the need to integrate every application and Web Service across a Zero Trust platform. The greater the integration expertise of any Zero Trust vendor, the faster an organization adopting their systems and platforms will attain secured stability across every threat surface.
- Forrester advises Zero Trust vendors to concentrate on four key aspects of their strategy if they’re going to deliver overwhelming value to organizations they’re selling to. These four key aspects include actively advocating for Zero Trust as evidenced by driving product strategies that prioritize needed capabilities; supporting micro-segmentation; enforcing policy everywhere by first enabling extensive, proven integrations using well-documented and tested APIs that make it possible to enable policy definition and enforcement across enterprises; and provide identity beyond identity and access management (IAM).
- Cyxtera Technologies, MobileIron, and Proofpoint are new to the Zero Trust World, each bringing valuable contributions to enterprises on their Zero Trust journey. Of the three, MobileIron is the most noteworthy as their approach to Zero Trust begins with the device and scales across mobile infrastructures. Forrester observes that “MobileIron’s recently released authenticator, which enables passwordless authentication to cloud services, is a must for future-state Zero Trust enterprises and speaks to its innovation in this space.” MobileIron’s product suite also includes a federated policy engine that enables administrators to control and better command the myriad of devices and endpoints that enterprises rely on today. Forrester sees all three vendors as having excellent integration at the platform level, a key determinant of how effective they will be in providing support to enterprises pursuing Zero Trust Security strategies in the future.
The latest Forrester Wave™: Zero Trust eXtended Ecosystem Platform Providers, Q4 2019, reflects the growing maturity of the Zero Trust eXtended (ZTX) Ecosystem. Adding in Zero Trust eXtended (ZTX) ecosystem advocacy and weighing it at 25% reflects how serious Forrester is about evaluating vendors on solid, real product features over marketing claims. The increased focus on platforms, APIs and integration also reflect the growing maturity of enterprises adopting Zero Trust frameworks today.
Gartner is predicting the worldwide public cloud services market will grow from $182.4B in 2018 to $214.3B in 2019, a 17.5% jump in just a year. Photo credit: Getty
- Gartner predicts the worldwide public cloud service market will grow from $182.4B in 2018 to $331.2B in 2022, attaining a compound annual growth rate (CAGR) of 12.6%.
- Spending on Infrastructure-as-a-Service (IaaS) is predicted to increase from $30.5B in 2018 to $38.9B in 2019, growing 27.5% in a year.
- Platform-as-a-Service (PaaS) spending is predicted to grow from $15.6B in 2018 to $19B in 2019, growing 21.8% in a year.
- Business Intelligence, Supply Chain Management, Project and Portfolio Management and Enterprise Resource Planning (ERP) will see the fastest growth in end-user spending on SaaS applications through 2022.
Gartner’s annual forecast of worldwide public cloud service revenue was published last week, and it includes many interesting insights into how the research firm sees the current and future landscape of public cloud computing. Gartner is predicting the worldwide public cloud services market will grow from $182.4B in 2018 to $214.3B in 2019, a 17.5% jump in just a year. By the end of 2019, more than 30% of technology providers’ new software investments will shift from cloud-first to cloud-only, further reducing license-based software spending and increasing subscription-based cloud revenue.
The following graphic compares worldwide public cloud service revenue by segment from 2018 to 2022. Please click on the graphic to expand for easier reading.
Comparing Compound Annual Growth Rates (CAGRs) of worldwide public cloud service revenue segments from 2018 to 2022 reflects IaaS’ anticipated rapid growth. Please click on the graphic to expand for easier reading.
Gartner provided the following data table this week as part of their announcement:
- Business Intelligence, Supply Chain Management, Project and Portfolio Management and Enterprise Resource Planning (ERP) will see the fastest growth in end-user spending on SaaS applications through 2022. Gartner is predicting end-user spending on Business Intelligence SaaS applications will grow by 23.3% between 2017 and 2022. Spending on SaaS-based Supply Chain Management applications will grow by 21.2% between 2017 and 2022. Project and Portfolio Management SaaS-based applications will grow by 20.9% between 2017 and 2022. End-user spending on SaaS ERP systems will grow by 19.2% between 2017 and 2022.
Sources: Gartner Forecasts Worldwide Public Cloud Revenue to Grow 17.5 Percent in 2019 and Forecast: Public Cloud Services, Worldwide, 2016-2022, 4Q18 Update (Gartner client access)
Cloud computing platforms and applications are proliferating across enterprises today, serving as the IT infrastructure driving new digital businesses. The following roundup of cloud computing forecasts and market estimates reflect a maturing global market for cloud services, with proven scale, speed and security to support new business models.
CIOs who are creating compelling business cases that rely on cloud platforms as a growth catalyst is the architects enabling these new business initiatives to succeed. The era of CIO strategist has arrived. Key takeaways include the following:
- 80% of enterprises are both running apps on or experimenting with Amazon Web Services (AWS) as their preferred cloud platform. 67% of enterprises are running apps on (45%) and experimenting on (22%) the Microsoft Azure platform. 18% of enterprises are using Google’s Cloud Platform for applications today, with 23% evaluating the platform for future use. RightScale’s 2018 survey was included in the original data set Statista used to create the comparison. Source: Statista, Current and planned usage of public cloud platform services running applications worldwide in 2018. Please click on the graphic to expand for easier viewing.
- Enterprise adoption of Microsoft Azure increased significantly from 43% to 58% attaining a 35% CAGR while AWS adoption increased from 59% to 68%. Enterprise respondents with future projects (the combination of experimenting and planning to use) show the most interest in Google (41%). Source: RightScale 2018 State of the Cloud Report. Please click on the graphic to expand for easier viewing.
- Wikibon projects the True Private Cloud (TPC) worldwide market will experience a compound annual growth rate of 29.2%, reaching $262.4B by 2027. The firm predicts TPC growth will far outpace the infrastructure-as-a-service (IaaS) growth of 15.2% over the same period. A true private cloud is distinguished from a private cloud by the completeness of the integration of all aspects of the offering, including performance characteristics such as price, agility, and service breadth. Please see the source link for additional details on TPC. Source: Wikibon’s 2018 True Private Cloud Forecast and Market Shares. Please click on the graphic to expand for easier viewing.
- Quality Control, Computer-Aided Engineering, and Manufacturing Execution Systems (MES) are the three most widely adopted systems in the cloud by discrete and process The survey also found that 60% of discrete and process manufacturers say their end users prefer the cloud over on-premise. Source: Amazon Web Services & IDC: Industrial Customers Are Ready For The Cloud – Now (PDF, 13 pp., no opt-in, sponsored by AWS). Please click on the graphic to expand for easier viewing.
- The Worldwide Public Cloud Services Market is projected to grow by 17.3 3% in 2019 to total $206.2B, up from $175.8B in 2018 according to Gartner. In 2018 the market will grow a healthy 21% up from $145.3B in 2017 according to the research and advisory firm. Infrastructure-as-a-Service (IaaS) will be the fastest-growing segment of the market, forecasted to grow by 27.6% in 2019 to reach $39.5B, up from $31B in 2018. By 2022, Gartner expects that 90% of enterprises purchasing public cloud IaaS will do so from an integrated IaaS and Platform-as-a-Service (PaaS), and will use both the IaaS and PaaS capabilities from that provider. Source: Gartner Forecasts Worldwide Public Cloud Revenue to Grow 17.3 Percent in 2019.
- More than $1.3T in IT spending will be directly or indirectly affected by the shift to cloud by 2022. 28% of spending within key enterprise IT markets will shift to the cloud by 2022, up from 19% in 2018. The largest cloud shift before 2018 occurred in application software, particularly driven by customer relationship management (CRM) software, with Salesforce dominating as the market leader. CRM has already reached a tipping point where a higher proportion of spending occurs in the cloud than in traditional software. Source: Gartner Says 28 Percent of Spending in Key IT Segments Will Shift to the Cloud by 2022.
- IDC predicts worldwide Public Cloud Services Spending will reach $180B in 2018, an increase of 23.7% over 2017. According to IDC, the market is expected to achieve a five-year compound annual growth rate (CAGR) of 21.9% with public cloud services spending totaling $277B in 2021. The industries that are forecast to spend the most on public cloud services in 2018 are discrete manufacturing ($19.7B), professional services ($18.1B), and banking ($16.7B). The process manufacturing and retail industries are also expected to spend more than $10B each on public cloud services in 2018. These five industries will remain at the top in 2021 due to their continued investment in public cloud solutions. The industries that will see the fastest spending growth over the five-year forecast period are professional services (24.4% CAGR), telecom (23.3% CAGR), and banking (23.0% CAGR). Source: Worldwide Public Cloud Services Spending Forecast to Reach $160 Billion This Year, According to IDC.
- Discrete Manufacturing is predicted to lead all industries on public cloud spending of $19.7B in 2018 according to IDC. Additional industries forecast to spend the most on public cloud services this year include Professional Services at $18.1B and Banking at $16.7B. The process manufacturing and retail industries are also expected to spend more than $10B each on public cloud services in 2018. According to IDC, these five industries will remain at the top in 2021 due to their continued investment in public cloud solutions. The industries that will see the fastest spending growth over the five-year forecast period are Professional Services with a 24.4% CAGR, Telecommunications with a 23.3% CAGR, and banking with a 23% CAGR. Source: Worldwide Public Cloud Services Spending Forecast to Reach $160 Billion This Year, According to IDC.
- 2018 BSA Global Cloud Computing Scorecard: Powering a Bright Future (PDF, 26 pp., PDF)
- Amazon Web Services & IDC: Industrial Customers Are Ready For The Cloud – Now
- Amazon Web Services Analyst Reports
- Bessemer Venture Partners, The State of the Cloud Industry in 2018
- Cisco Global Cloud Index
- Cloud Computing Market Projected To Reach $411B By 2020
- Cloud Revenues Continue to Grow by 50% as Top Four Providers Tighten Grip on Marke
- Forrester’s 10 Cloud Computing Predictions For 2018
- Gartner Forecasts Worldwide Public Cloud Revenue to Grow 17.3 Percent in 2019.
- Gartner Forecasts Worldwide Public Cloud Revenue to Grow 21.4 Percent in 2018
- Gartner Says 28 Percent of Spending in Key IT Segments Will Shift to the Cloud by 2022.
- Gartner Survey Says Cloud Computing Remains Top Emerging Business Risk
- Kleiner Perkins, Internet Trends 2018, Mary Meeker
- McKinsey & Company, Cloud adoption to accelerate IT modernization by Nagendra Bommadevara, Andrea Del Miglio, and Steve Jansen
- McKinsey & Company, Public cloud in China: Big challenges, big upside by Hari Kannan and Christopher Thomas
- McKinsey & Company, Ten trends redefining enterprise IT infrastructure by Arul Elumalai, Kara Sprague, Sid Tandon, and Lareina Yee
- More than half of EU enterprises use public cloud
- Public Cloud Growth Trends for 2018 and the Future Outlook
- RightScale 2018 State of the Cloud Report
- Spending on IT Infrastructure for Deployment in Cloud Environments is Forecast to Grow 10.9% in 2018, According to IDC
- Spending on Public Cloud Infrastructure Continues to Surge in Q1
- The Forbes Cloud 100: The Top Private Companies In Cloud Computing, 2018
- Wikibon’s 2018 True Private Cloud Forecast and Market Shares
- Worldwide Public Cloud Services Spending Forecast to Reach $160 Billion This Year, According to IDC.
- Asia/Pacific grew the fastest of all regions globally, increasing 9% 2015, closely followed by greater China with 18.4% growth.
These and many other insights into the current state of the global CRM market are from Gartner’s Market Share Analysis: Customer Relationship Management Software, Worldwide, 2015 (PDF, client access) published earlier this month. The top five CRM vendors accounted for 45% of the total market in 2015. Salesforce dominated in 2015, with a 21.1% annual growth rate and absolute growth of over $902M in CRM revenue, more than the next ten providers combined. Gartner found that Salesforce leads in revenue in the sales and customer service and support (CSS) segments of CRM, and is now third in revenue in the marketing segment. Gartner doesn’t address how analytics are fundamentally redefining CRM today, which is an area nearly every C-level and revenue team leader I’ve spoken with this year is prioritizing for investment. The following graphic and table compare 2015 worldwide CRM market shares.
Adobe, Microsoft, and Salesforce Are Growing Faster Than The Market
Adobe grew the fastest between 2014 and 2015, increasing worldwide sales 26.9%. Salesforce continues to grow well above the worldwide CRM market average, increasing sales 21.1%. Microsoft increased sales 20% in the last year. The worldwide CRM market grew 12.3% between 2014 and 2015.
Analytics, Machine Learning, and Artifical Intelligence Are The Future Of CRM
Advanced analytics, machine learning and artificial intelligence (AI) will revolutionize CRM in the next three years. Look to the five market leaders in 2015 to invest heavily in these areas with the goal of building patent portfolios and increasing the amount of intellectual property they own. Cloud-based analytics platforms offer the scale, speed of deployment, agility, and ability to rapidly prototype analytics workflows that support the next generation of CRM workflows. My recent post on SelectHub, Selecting The Best Cloud Analytics Platform: Trends To Watch In 2016, provides insights into how companies with investments in CRM systems are making decisions on cloud platforms today. Based on insights gained from discussions with senior management teams, I’ve put together an Intelligent Cloud Maturity Model that underscores why scalability of a cloud-based analytics platform is a must-have for any company.
Sources: Gartner Says Customer Relationship Management Software Market Grew 12.3 Percent
- Channel sales and inside sales strategies delivered the highest revenue growth rates in 2014.
- Companies in the $5M – $7.5M range achieved 70% revenue growth in 2014, surpassing the median 36% growth rate last year.
These and many other insights are from the 2015 Pacific Crest SaaS Survey published by David Skok of Matrix Partners in collaboration with Pacific Crest Securities. You can download a free copy of Part I of the study here (PDF, opt-in, 72 pp). 305 SaaS companies were interviewed, 31% from international locations and 69% from North America. David Skok and Pacific Crest Securities will publish Part 2 of the results in the near future. SaaS Metrics 2.0 – Detailed Definitions provides a useful reference for many of the SaaS metrics mentioned in the study.
This year’s survey attracted an eclectic base of respondents, with median revenues of $4M a year, with 133 companies reporting less than $5M, and 57 over $25M. Annual Contract Value (ACV) across all respondents is $21K, with 17% of respondents reporting ACVs over $100K. Please see pages 3 & 4 of the study for a description of the methodology. Key take-aways from the study include the following:
- SaaS GAAP revenue growth is accelerating in 2014 and is projected to increase further in 2015 from 44% to 46%. Median revenue growth in 2014 for all survey respondents was 44%, with the aggregate projected growth for 2015 reaching 46%. When SaaS companies with less than $2.5M in revenues are excluded, median GAAP growth was 35% in 2014 and is expected to reach that same level in 2015.
- SaaS companies with mixed customer strategies are growing at 57% a year. Excluding respondent companies with less than $2.5M in revenues, a mixed customer strategy dominates all others. Concentrating on enterprises and small & medium businesses (SMBs) both drove 33% revenue growth of respondent companies this year.
- 40% of SaaS companies are using Amazon Web Services (AWS) to deliver their apps today. AWS is projected to increase to 44% three years from now, with Microsoft Azure increasing from 3% today to 6% in 3 years.
- 41% of all SaaS companies surveyed rely primarily on field sales. Factoring out the companies with less than $2.5M in revenue, field sales accounts for 32%.
- Field sales dominates as the most effective sales strategy when median deal sizes are $50K or more. In contrast, inside sales dominates $5K to $15K deal sizes, and the Internet dominates deal sizes less than $1K. The following graphic provides insights into the primary mode of sales by median initial contract size.
- 16% of new Average Contract Value (ACV) sales is from upsells, with the largest companies being the most effective at this selling strategy. One of the strongest catalysts of a SaaS companies’ growth is the ability to upsell customers to a higher ACV, generating significantly greater gross margin in the process. SaaS companies with revenues between $40M to $75M increase their ACV by 32% using upsells. Larger SaaS companies with over $75M in sales generate 28% additional ACV with upsell strategies.
- The highest growth SaaS companies are relying on upsells to fuel higher ACV. There is a significant difference between the highest and lowest growth SaaS companies when it comes to upsell expertise and execution. The following graphic provides an overview by 2014 GAAP revenue category of percent of ACV attributable to upsells.
- 60% are driving revenues with “Try Before You Buy” strategies, with 30% generating the majority of their revenues using this approach. On contrast, only 30% of companies generate revenues and ACV from freemium.
- 73% of midmarket companies say the complexity of their stored data requires big data analytics apps and tools to better gain insights from.
- 54% of midmarket companies’ security budgets are invested in security plans versus reacting to threats.
These and many other insights are from Dell’s second annual Global Technology Adoption Index (GTAI 2015) released last week in collaboration with TNS Research. The Global Technology Adoption Index surveyed IT and business decision makers of mid-market organizations across 11 countries, interviewing 2,900 IT and business decision makers representing businesses with 100 to 4,999 employees.
The purpose of the index is to understand how business users perceive, plan for and utilize four key technologies: cloud, mobility, security and big data. Dell released the first wave of its results this week and will be publishing several additional chapters throughout 2016. You can download Chapter 1 of the study here (PDF, no opt-in, 18 pp.).
Key take-aways from the study include the following:
- Orchestrating big data, cloud and mobility strategies leads to 53% greater growth than peers not adopting these technologies. Midmarket organizations adopting big data alone have the potential to grow 50% more than comparable organizations. Effective use of Bring Your Own Device (BYOD) mobility strategies has the potential to increase growth by 53% over laggards or late adopters..
- 73% of North American organizations believe the volume and complexity of their data requires big data analytics apps and tools. This is up from 54% in 2014, indicating midmarket organizations are concentrating on how to get more value from the massive data stores many have accumulated. This same group of organizations believe they are getting more value out of big data this year (69%) compared to last year (64%). Top outcomes of using big data include better targeting of marketing efforts (41%), optimization of ad spending (37%), and optimization of social media marketing (37%).
- 54% of an organization’s security budget is invested in security plans versus reacting to threats. Dell & TNS Research discovered that midmarket organizations both in North America and Western Europe are relying on security to enable new devices or drive competitive advantage. In North America, taking a more strategic approach to security has increased from 25% in 2014 to 35% today. In Western Europe, the percentage of companies taking a more strategic view of security has increased from 26% in 2014 to 30% this year.
- IT infrastructure costs to support big data initiatives (29%) and costs related to securing the data (28%) are the two greatest barriers to big data adoption. For cloud adoption, costs and security are the two biggest barriers in midmarket organizations as is shown in the graphic below.
- Cloud use by midmarket companies in France increased 12% in the last twelve months, leading all nations in the survey. Of the 11 countries surveyed, France had the greatest increase in cloud adoption within midmarket companies. French businesses increased their adoption of cloud applications and platforms from 70% in 2014 to 82% in 2015.
Sources: Dell Study Reveals Companies Investing in Cloud, Mobility, Security and Big Data Are Growing More Than 50 Percent Faster Than Laggards. October 13, 2015
Gartner announced their top 10 strategic technology trends for 2016 at the Gartner Symposium/ITxpo held October 4 – 8th in Orlando. David Cearley, Vice President and Gartner Fellow, presented the company’s Top Ten Strategic Technology Trends for 2016. You can find the video here.
Key take-aways from his presentation and the trends announced are provided below:
- Enterprise 3D-printing shipments will attain a 64.1% Compound Annual Growth Rate (CAGR) through 2019. David Cearley mentioned during his keynote that jet engines are being 3D printed today. He gave the example to illustrate that 3D printing will continue to gain adoption in more demanding manufacturing environments including aerospace, automotive, energy, medical devices and military-based markets and industries.
- Emergence of an entirely new class of business models based on smart machine technologies, advanced analytics and big data. Combining machine learning, continued adoption of Internet of Things (IoT) sensors and supporting data models, and advanced intelligence to interpret and act on the data, Gartner’s predictions set the stage of an entirely new class of business models. Manufacturing-as-a-Service and paying only for the production time used in a factory are within reach for more companies than before based on these predictions.
- The device mesh will expand to include IoT-based devices that scale well beyond the enterprise. Gartner is predicting that in the next three years traditional computing and communication devices, including desktop and mobile devices will increasingly be augmented by wearable devices, home electronics including appliances with sensors, transportation-based sensors and data collection devices, and environmental devices all capable of capturing data in real-time.
- A digital mesh will continue to proliferate, aligning apps and devices to individuals’ specific roles and tasks. Gartner sees this digital mesh as an expanding series of devices, services, platforms, informational networks and individuals that integrate together and provide contextual intelligence and enabling greater collaboration. The proliferation of the digital mesh will lead to more ambient, contextually intelligent and intuitive app design over time Gartner predicts.
- The next twelve months will also see the proliferation of algorithm-based businesses enabling automated background tasks including smart machines. Gartner’s technology trends for 2016 set a solid foundation for the growth of globally-based smart factories and production centers. Acumatica, Plex Systems and other Cloud ERP providers are ideally positioned for this trend, having proven their ability to provide manufacturing intelligence from the shop floor to the top floor. In addition to cloud platforms, these algorithm-based businesses will need to support unstructured data analysis including latent semantic indexing (LSI), data taxonomy and classification algorithms to ensure data fidelity and scalability, and more robust analytics and predictive modeling systems.
- Combining algorithms, analytics, data architectures and smart machines have the potential to revolutionize manufacturing quickly. General Electric’s Predix platform, IBM’s IoT Foundation and several other cloud-based IoT platforms are already making progress on transforming the vision of algorithm-based smart machine production strategies into a reality for manufacturers globally.
- Gartner sees a new IT reality taking shape. Adaptive security, advanced systems, Internet of Things (IoT), mesh app & service architectures are the catalysts of the new nature of IT that Gartner is predicting.
A graphic illustrating the top 10 strategic trends is show below:
Gartner Identifies the Top 10 Strategic Technology Trends for 2016. Press Release Announcement, October 6, 2015.
Video replay of the keynote: The Top 10 Strategic Technology Trends for 2016
These and other insights are from recent cloud computing forecasts and market estimates published by research and advisory consultancies including International Data Corporation (IDC), Forrester, Gartner, Ovum, Wikibon and others.
While the methodologies differ significantly, the findings from a recent Economist Intelligence Unit study provide the galvanizing thread across this diverse set of data. The Economist found that the most mature enterprises are now turning to cloud strategies as a strategic platform for growing customer demand and expanding sales channels. The study found low-maturity or lagging cloud adopters focus on costs more than growth.
Key take-aways from the round-up are provided below:
- 57% of IT architects and tech professionals are running apps on the Amazon Web Services (AWS) platform today. Rightscale’s 2015 State of the Cloud Report found that AWS adoption is over 4X greater than Microsoft Azure IaaS and 5X that of Rackspace Public Cloud. Rightscale found that AWS, Microsoft Azure IaaS, Azure PaaS, Rackspace Public Cloud and VMWare vCloud Air are the top five public cloud platforms used in enterprises today. Source: RightScale 2015 State Of The Cloud Report
- Goldman Sachs is forecasting the cloud infrastructure and platform market will grow at a 19.62% CAGR from 2015 to 2018, reaching $43B by 2018. Their recent market analysis also forecasts that the global market for cloud infrastructure and platforms will grow from $21B this year to $43B by the end of the forecast period. Source: How Big Can The Amazon Web Services Business Grow In The Future?
- 46% of surveyed firms in the European Union (EU) are using advanced cloud services relating to financial and accounting software applications, customer relationship management or to the use of computing power to run business applications. In 2014, almost twice as many firms used public cloud servers (12%) versus private cloud servers (7%). The following graphic illustrates the degree of dependence on cloud computing, by economic activity, EU-28, 2014. Source: Eurostat Statistics Explained. Cloud computing – statistics on the use by enterprises.
- 64% of Small & Medium Businesses (SMBs) are already using cloud-based apps, with average adoption being 3 apps. 78% of businesses indicate that they are considering purchasing new solutions in the next 2-3 years creating the potential to move the average number of applications used to 7, with 88% consuming at least one service. Source: The small business revolution: trends in SMB cloud adoption.
- Worldwide spending on enterprise application software will grow 7.5% to reach $149.9B in 2015, increasing to more than $201B in 2019 with accelerating cloud adoption driving new software sales. Gartner’s analysis of enterprise software spending shows that alternative consumption models to traditional on-premises licenses are accounting for more than 50% of new software implementations; these include SaaS, hosted license, on-premises subscriptions and open source. Gartner also predicts that by 2020, about a quarter of organizations in emerging regions will run their core CRM systems in the cloud, up from around 10 percent in 2012. Source: Gartner Says Modernization and Digital Transformation Projects Are Behind Growth in Enterprise Application Software Market.
- 2015 Top Markets Report Cloud Computing A Market Assessment Tool for U.S. Exporters U.S. Department of Commerce | International Trade Administration | Industry & Analysis (I&A) July 2015
- Cloud Computing: Principles and Paradigms. (PDF, free, no opt-in, 674 pp.)
- Forrester Research – Adoption Profile: Hosted Private Cloud, North America And Europe, Q3 2014
- Global Cloud IT Infrastructure Market Rose 25 Percent in Q1: IDC
- 451 Research & Microsoft Hosting and Cloud Study 2015 – Beyond Infrastructure: Cloud 2.0 Signifies New Opportunities for Cloud Service Providers Survey Results. (free, no opt-in, 66 pp.)
- IDC Report, Worldwide Cloud Systems Management Software Market Shares, 2014: Year of Hybrid Cloud (free, no opt-in).
- Montclare SaaS 250
- Oracle Industry Analyst Relations Reports